Telefonica's 2Q Mexico Wireless Subscribers Up 38% to 14.1 Million
Published on: 31st Jul 2008
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MEXICO CITY (Dow Jones) Spanish phone giant Telefonica said Thursday its wireless subscriber base in Mexico reached 14.1 million at the end of the second quarter, up 38% from a year earlier.
"This growth was underpinned by a competitive and flexible commercial offering in the prepay segment," Telefonica said in its quarterly earnings report.
Telefonica Moviles Mexico, which operates under the Movistar brand, is the country's second-largest mobile service provider behind America Movil unit Telcel, which had 52.9 wireless customers at the end of June.
Grupo Iusacell had 4.1 million subscribers at the end of the second quarter, and Nextel Mexico, a unit of NII Holdings, had 2.4 million.
Telefonica said it had net wireless customer additions of 1.6 million in Mexico in the first half of the year, including 855,630 in the second quarter.
Mexico's mobile penetration rate reached 68% by the end of the second quarter, up from 58% a year ago, the company added.
Telefonica said its revenue in Mexico rose 34% in the first half of the year to EUR784 million, while operating income before depreciation and amortization more than trebled to EUR175 million.
After capital expenditures of EUR137 million, operating cash flow in the first half of the year was EUR38 million.
-By Anthony Harrup, Dow Jones Newswires; (5255) 5001 5727, firstname.lastname@example.org
(END) Dow Jones Newswires